Updated report by Thai Newsroom and Reuters – published by Yahoo!News
DOMESTIC GOLD price surged to a new record high this morning (Apr. 3) with 96.5% gold ornaments being sold at 40,200 baht a baht weight, up 450 baht from the previous day.
In its third announcement at 11.04 a.m. the Gold Traders Association set the buying price of 96.5% gold ornaments at 38,885.40 baht a baht weight.
The selling price of 96.5% one-baht weight gold bars was fixed at 39,700 baht and the buying price 39,600 baht.
Gold prices extended a record run today (Apr. 3) as concerns of rising inflation boosted demand for gold as a hedge, with bullion traders shrugging off doubts over an imminent US interest rate cut and rising Treasury yields, Reuters said.
Spot gold was up 0.3% at $2,286.24 per ounce, as of 0406 GMT, and hit a record high of $2,288.09 earlier in the session. Bullion has hit record highs consecutively since Thursday.
US gold futures gained 1.1% to $2,306.60.
“Gold continues to receive safe-haven flows as Ukraine continues to attack Russia’s oil infrastructure, to the point it is ignoring rising US yields and the prospects of the Fed not cutting rates in June,” City Index senior analyst Matt Simpson said.
Federal Reserve policymakers on Tuesday said they think it would be “reasonable” to cut US rates three times this year, even as stronger recent economic data has sown investor doubts about that outcome.
Data this week showed US manufacturing unexpectedly rebounded, with the rise in raw materials prices triggering fears that inflation could resurge.
“With commodity prices rising in general, it brings the risks of another round of inflation – so perhaps investors are hedging for inflation,” Simpson said.
Gold, which is used a hedge against inflation and a safe haven during times of political and economic uncertainty, has gained more than 10.8% so far this year and is set for a seventh consecutive daily rise.
“Right now, gold is sensing that inflation is more of a driving variable than the interest rates and part of the momentum is also driven by speculators, hedge funds and commodity funds that start buying gold whenever their quantitative systems give them signals,” Marex analyst Edward Meir said.
Elsewhere, spot silver rose 1.2% to $26.41 per ounce, platinum gained 0.8% to $925.72 and palladium edged up 0.6% to $1.009.45.
Gold’s searing rally is doing nothing to reignite enthusiasm for platinum jewellery in Asia, analysts said.
CAPTIONS:
Top: Gold ornaments. Photo: Thai Rath
Front Page: Gold bullion. Photo: Getty Images and published by USA Today
(Reporting by Sherin Elizabeth Varghese and Swati Verma in Bengaluru; Editing by Sonia Cheema)
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